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The “Trump Accounts” programme aims to boost long-term savings for American children, with annual contributions capped at $5,000 and support from major corporations and billionaire donors.
US President Donald Trump is set to deliver remarks on a new government-backed investment scheme known as “Trump Accounts” on Wednesday (Jannuary 28) at 11 a.m. ET, according to White House press secretary Karoline Leavitt.
Leavitt wrote on X that the accounts are “one of the greatest feats from the One Big Beautiful Bill,” referring to the administration’s sweeping tax and spending legislation passed over the summer.
What are Trump Accounts?
Under the new law, the US Treasury will deposit $1,000 into an investment account for every American child born between January 1, 2025, and December 31, 2028. The accounts are fully in the child’s name, with parents or legal guardians acting as custodians until the child turns 18.
Annual contributions by families, employers or friends are capped at $5,000, though donations from nonprofits and governments are exempt from the limit. Parents cannot begin contributing until July 4, 2026, which coincides with the nation’s 250th anniversary.
How the money works
Funds must be invested in low-cost index funds tracking primarily US companies. The accounts are locked until the child turns 18, when they roll over into individual retirement accounts (IRAs). Withdrawals are subject to standard IRA rules, with exceptions for qualified expenses such as education, first-time home purchases or starting a business.
The accounts offer fewer tax advantages than 529 college savings plans but allow contributions from a broader range of sources, including employers, philanthropists and state governments.
Corporate and philanthropic backing
Treasury Secretary Scott Bessent said the administration is encouraging wealthy donors and companies from all 50 states to support the initiative. Companies including Visa and BlackRock have pledged to contribute to employees’ children.
Hedge fund billionaire Ray Dalio and his wife Barbara have committed $250 each to 300,000 children in Connecticut, a pledge totaling at least $75 million. Earlier, billionaires Michael and Susan Dell announced a $6.25 billion donation, pledging $250 for 25 million children aged 10 and under in qualifying ZIP codes nationwide.
Eligibility and access
All US children under 18 with a valid Social Security number are eligible. Parents can open accounts using a newly created IRS Form 4547, either when filing taxes or through an online portal expected to launch by summer 2026.
“This is a pro-family initiative that will help millions of Americans harness the strength of our economy to lift up the next generation,” Trump said, adding that the program gives children “a big jump on life.”
English (US) ·